New Apprenticeship Regime
Using the UVAC Template Contract
UVAC Workshop – Sheffield Hallam University – 12 June 2017
NWL Legal Focus
• In-house legal team at North West Leicestershire District Council
• Provide legal services externally under Local Authorities (Goods and
Services) Act 1970
• Other local authorities
• FE Colleges
• “Public Bodies”
• Benefits
• Maintains high quality in-house legal team
• Lower cost legal services available to external clients
• Services
• Property
• Planning
• Litigation (civil and regulatory prosecutions)
• Commercial/Procurement
Apprenticeship Contracts
The New Structure
• Employers pay Apprenticeship Levy to Skills Funding Agency (SFA)
• FE colleges become “Providers” of education services to Employers
• SFA pays Providers out of Levy funds
• Employers enter into a Contract for Services with Providers
Skills Funding
Agency
Employers
Contract for
Services
Providers
SFA Funding Rules
Requirements for contracts
• New rules apply from 1 May 2017
• Colleges become “main providers”
• Must comply with the Funding Rules, the Funding
Agreement and the Individualised Learner Record (ILR)
Specification
• Must have a Contract for Service (Provider/Employer)
SFA Funding Rules
What do the Funding Rules say about Service Contracts?
• Contract must require payment by Employer (Clause 6.1)
• Employer to select assessment organisation (Schedule 1)
• Dealing with learner complaints (Clause 7)
• Minimum duration of an apprenticeship is 1 year at 30 hrs
per week (including off the job training) (Clause 4.1.1 and
4.1.7)
• Monitoring workplace practice (Clause 4.2.3)
• Breaks in learning/unemployment/redundancy (Clause
4.1.5 and 10)
• Details of sub-contractors (Schedule 1)
• Documentary evidence held by employer (Clause 4.1.2)
Structuring a Services Contract
Standard Terms
and Conditions
Specification
and
Costs Schedule
Terms & Conditions
Terms & Conditions
Using the UVAC Template
• Top Sheet
• Parties
• Expiry Date (Longstop) (Clause 2)
• Fixed/Multiple Apprenticeships (Clause 5)
• Training Provider Administration Service
• Schedules
• List of Apprenticeship Programmes
• Mandatory Policies
• College’s Own Complaints Procedure
Terms & Conditions
Training Provider Obligations
• Deliver training in accordance with the specification
(Clause 3.1.1)
• Compliance with Funding Rules (Clause 3.1.3)
• Contracting with assessment organisation (Clause 3.2)
• Dealing with learner complaints (Clause 7)
• First contact points
• Apprenticeship Helpline
Terms & Conditions
Employer Obligations
• Employ and pay the apprentice for duration of
apprenticeship (Clause 4.1.1)
• Complete Apprenticeship Agreement (Clause 4.1.3)
• Confirm eligibility (Clause 4.1.6)
• Offer relevant hours of work (Clause 4.1.7(a))
• Allow 20% off the job training (Clause 4.1.7(c))
Terms & Conditions
Employer Obligations
• Provide any training/experience allocated to them in the
Specification (Clause 4.1.4)
• Comply with Employer’s Funding Agreement (Clause 4.1.8)
• Assist with Provider’s compliance with Funding Rules
(Clause 4.1.2)
• Supply documentary evidence held by Employer (Clause
4.1.2, 4.1.6 ad 4.1.7)
Terms & Conditions
Keeping Evidence (P211.1-211.28)
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Contract for Services (Provider/Employer)
Signed Commitment Statement (Apprentice/Provider/Employer)
Apprenticeship agreement (Apprentice/Employer)
Details of 20% training and how it will be delivered
Employer to evidence to you that apprenticeship completed during
working hours
Evidence of the individual’s eligibility
Evidence that apprentice is employed by the employer, the job role and
location of work
Evidence that employer has less than 50 employees (if that is the case)
Initial English and Maths assessments
Evidence of entitlement to additional payments (under 18s, has an EHC
Plan, comes from deprived area, a looked after child)
Terms & Conditions
Other Key Terms
• Payment (Clause 6)
• Dispute resolution (Clause 7)
• Termination (Clause 8)
• Material breach
• Conviction
• Insolvency
• Reputational risk to College
• SFA Funding Agreement terminated
Terms & Conditions
Other Key Terms
• Indemnities and limits of liability (Clause 12)
• Reasonable caps based on value of contract/risk
• No exclusion for death or personal injury
• Insurance (Clause 12.4)
• Safeguarding (Clause 13)
• Health & Safety (Clause 14)
• Confidentiality (Clause 15)
• Intellectual Property (Clause 16)
• Data Protection/Freedom of Information (Clause 17)
• Equality Legislation (Clause 18)
• Contract Variations (Clause 19)
Specification – Schedule 1
Specification
Specification – Schedule 1
• Training to be delivered and standards to be met
• Duration (start/end dates)
• Location of delivery and use of assets/equipment
• Number of Apprentices
• Training to be delivered by Employer
• Identity of Assessment Organisation
• Use of sub-contractors
• Conflicts of Interest
• Details of English, Maths and IT provision
• Details of aspects that are/are not eligible for funding
Specification
Specification and Sub-Contracting
• Use of subcontractors must be agreed at start
• State what training/assessment to be delivered by
Provider/sub-contractor and cost of each
• Funding kept by Provider for managing sub-contractors
details of support given to them in exchange
• Provider’s proposed monitoring of sub-contractors
• Any conflicts of interest between Provider and the subcontractor
Specification
Managing Sub-Contractors
• Must have written agreement in place with subcontractors
• Regularly monitor sub-contractors for quality-assurance
• Must get legal advice on compliance with Public Contracts
Regulations 2015 in buying in training services
• Provider remains responsible for delivery and quality
• No sub-sub-contractors
• Must return Delivery Sub-contractor Declaration to SFA
• Subcontractors have their own eligibility rules (P125)
• Must carry out DD on sub-contractors so you know they
can deliver and make this available
Costs Schedule – Schedule 1
Costs Schedule
Payment
• Cost of taking part negotiated between Employer, Training
Provider and Assessment Organisation
• If cost exceeds maximum funding for that apprenticeship’s
funding band then Employer must pay the difference
• Must include cost of Assessment Organisation and subcontractors in price agreed with employer
• Contract must require Employer to pay full cost
• Payment Schedule
• VAT can be charged on sums paid by the Employer that
exceed the Funding Band. Training paid for by government
funding is exempt from VAT.
Further Documents
Other Contracts in the structure
• Contract with Sub-Contractors
• Contract with Assessment Organisation (P114)
• Commitment Statement
For more information.....